[Ord. No. 15-90, § 1]
It is the intent and purpose of this article to provide for
the indemnification of municipal officials as permitted by N.J.S.A.
59:10-1, et seq.
[Ord. No. 15-90, § 1]
As used in this article, the following terms shall have the
meanings indicated:
Coverage afforded by insurance policies of every kind, whether
the premiums be paid by the Borough, the municipal official or someone
on his behalf.
Any officer, employee, board or committee member, whether
full- or part-time, appointed or hired by the Mayor or Borough Council
or by any other board or committee authorized to do so, who is authorized
to perform any act or service; provided, however, that the term does
not include an independent contractor.
[Ord. No. 15-90, § 1]
Subject to the provisions of this article, the Borough shall
reimburse a municipal official for all reasonable and necessary expenses
incurred (specifically including reasonable attorneys' fees and court
costs) and all monetary judgments imposed upon him in any action or
legal proceeding of a noncriminal nature arising out of or incidental
to the performance of the duties of the position or office held by
such municipal official.
[Ord. No. 15-90, § 1]
The Borough shall not be obligated to provide reimbursement
in the following instances:
(a)
The act or omission was not within the scope of the municipal official's
authorized function.
(b)
The act or failure to act was because of actual fraud, willful misconduct,
actual malice or an intentional wrong.
(c)
Where the legal proceeding is instigated or brought by the municipal
official.
(d)
Where the legal proceeding involves a claim of misfeasance or malfeasance
in office or a claim of fraud, theft or misappropriation of public
funds and the municipal official is found liable for the charge.
(e)
Where the legal proceeding is instigated or brought by the Borough
against the municipal official.
(f)
Where the legal proceeding involves a question concerning the election
laws.
[Ord. No. 15-90, § 1]
The amount the Borough is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official or by the net amount (recovery, less attorneys'
fees, disbursements and court costs) of any money received by the
municipal official in any counteraction against the person or persons
bringing the action against him.
[Ord. No. 15-90, § 1]
A municipal official shall not be entitled to indemnification
or reimbursement pursuant to this article unless, within 10 calendar
days of the time he is served with any summons, complaint, process,
notice, demand or pleading, he delivers the original or a copy thereof
to the Borough Clerk. The municipal official shall be obliged to cooperate
with the Borough in the conduct of his defense. Whenever competent
and disinterested legal counsel is available to the Borough through
any insurance coverage, the municipal official shall be obliged to
be represented by such counsel. If the Borough wishes to use the Borough
Attorney or the attorney for any board or committee of the Borough
to defend the action, the municipal official shall be obligated to
be represented by that attorney unless there is a conflict of interest.
The refusal of the municipal official to cooperate with the Borough
shall terminate the Borough's obligation to reimburse the municipal
official.
[Ord. No. 15-90, § 1]
If the legal proceeding is terminated by an agreement among
the parties, then the Borough shall not be obligated to reimburse
the municipal official unless the Borough approves the settlement
agreement.
[Ord. No. 15-90, § 1]
If the municipal official files a counteraction in the legal
proceedings, the Borough shall not be obligated to reimburse him for
any attorneys' fees or court costs attributable to such counteraction.
[Ord. No. 15-90, § 1]
The Borough may reimburse a municipal official for a portion
of expenses incurred prior to a final decision in a legal proceeding,
but the Borough shall be entitled to wait for a final determination
before being obligated to make any payments.
[Ord. No. 15-90, § 1]
With respect to members of the Borough's Police Department,
the provisions of N.J.S.A. 40A:14-155 shall supersede this article.
[Ord. No. 15-90, § 1]
Any legal action which may be covered by this article which
has not been reduced to a final judgment as of the date of passage
shall be covered by the terms of this article.
